FUND CONTROL AND MANAGEMENT PROBLEMS IN NIGERIA LOCALGOVERNMENT (A CASE STUDY OF OWERRI WEST)

CHAPTER ONE

• INTRODUCTION

The local government is the third tier of government in the Nigerian government system. Prior to the major local government reform of 1976 there was no uniform local government system in Nigeria, rather, there existed many types of local government such as divisional, district and local councils in the East’s in the North era native authority, district and village council. The responsibilities of dealing matters and policies relating to local government were carried out by the federal and state government, this led to the concentration of government, the urban levels while the rural area did not fully feel the impact of governance.

1.1 BACKGROUND OF THE STUDY

The beginning of a uniform in local government system in Nigeria which was aimed at ensuring effectiveness and efficiency in the administration of local government is traceable to the 1976 local government reform policy promulgated by the late General Murtala Muhammed/ General Olusegun Obasanjo’s military regime. This policy gave rise to uniformity in Nigeria local government system and reviewed to an extent, the state and federal government burden on local matters and responsibilities governance, the reform created three hundred and one (301) local government in Nigeria. This was to make the impact of governance fully felt at the local levels.

In 1989, in furtherance to reforms in the local government administration some autonomy was granted to local government in Nigeria under the federal military government of Ibrahim Babangida. The administration equally promulgated decree No. 15, sect 27. Basic constitutional and transitional provision to fashion out the main functions of local government thus:

1. Formulation of economic planning and development scheme of the local government.
2. Collection of rates and insurance of radio and television license.
3. Establishment and maintenance of cemeteries, burial grounds and homes for the carts.
4. Licensing of bicycles, trucks (other than mechanically propelled trucks) canoes, wheel barrows and carts.
5. Establishment of maintenance and regulation of slaughter houses, slaughter slabs, markets, motor parks and public conveniences.
6. Construction and maintenance of roads, streets lightings, dams, parks, gardens, open spaces or such public facilities as may be prescribed from time to time by the executive governor on houses of assembly of a state.
7. Naming of roads and streets and numbering of houses.
8. Provision and maintenance of public convenience, sewage and refuse disposal.
9. Registration of all deaths, births and marriages.
10. Assessment of privately owned houses or tarriance for the purpose of leaving such rates, it may be prescribed by the executive governor or house of assembly or state.

Furthermore, in 1997 more local governments were created bringing to a total number of seven hundred and seventy four (774) local governments in Nigeria, all these are aimed at streaming the administration and allocation of responsibilities in order to ensure that local government serve as catalyst to economic developments at grassroots level. In an effort to consolidate the federal government efforts towards the realization of decentralization of authority a decretive contained in the reform conferred power on state government on the basis of equality and population this added incentive to local government with wide raging responsibilities for local service delivery and promotion of suitable development, the prudent and efficient management of financial resources is a task that must be neglected at the risk of rural dwellers dissatisfaction and disaffection especially now that the country is undergoing an excruciating economic development in the local level, the local government must ensure an improved revenue generation mechanism to generate more fund and to supplement the statutory allocation from federal government and internally generated revenues. Over the years, since in option as the third tier of government, local government poor performance has been attributed to insufficiency of funds in spite of the statutory allocation from the federation account and state governments. This then calls for efficiency in generating revenue so as to have enough funds to cater the responsibilities.

1.2 STATEMENT OF PROBLEM

It is an indisputable fact that local governments in Nigeria were established for political administrative and service provision purpose.

The rate of involvement of officers dealing with public funds in act ranging from misappropriation of fraud and embezzlement of public fund has put those entrusted with the management of public fund.

Notwithstanding the percentage given to the local government councils by the federal and state governments, the management of fund is still a problem in the local government system. Some of the problems facing the local government in Nigeria on fund control management include:

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